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HomeMy WebLinkAboutMIN FC 2026/01/22 (2024-2026) Committee on Finance 27t''Session West Hawai`i Civic Center 74-5044 Ane Keohokalole Highway,Building A Kailua-Kona, Hawai`i January 22, 2026 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 1:01 p.m.,in the Council Chambers, Kailua-Kona,by Mr. James E. Hustace, Acting Chair. ROLL CALL: Present: Mr. James E. Hustace, Vice Chair Ms. Michelle M. Galimba, Member Mr. Holeka Goro Inaba,Member(came in later) Ms. Jenn Kagiwada,Member Ms. Ashley L. Kierkiewicz,Member(via videoconference from Hilo) Ms. Heather L. Kimball,Member Mr. Dennis "Fresh" Onishi,Member Ms. Rebecca Villegas,Member Absent&Excused: Mr. Matt Kaneali`i-Kleinfelder, Chair • STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: (There were none.) COMMUNI- The Chair directed the Committee to proceed to the next order of Business, CATIONS: Communications. Comm. 23.27: REPORT OF FUND TRANSFERS AUTHORIZED: JUNE 16—30 AND DECEMBER 1 - 15, 2025 From Controller Jon Arbles, dated December 17, 2025. Motion on Close File: Ms. Kimball moved to close file on Comm. 23.27. Seconded by Ms. Kagiwada. ACTING CHR. HUSTACE: Members, any discussion on Communication 23.27? Nothing going on. Okay. Let's see. I think I have one question here for Office of Housing. MS. KIERKIEWICZ: Chair, we have representatives from Housing here. They are approaching. FC-27 January 22,2026 ACTING CHR. HUSTACE: Thank you so much. Just a quick question. If you could give us an update on the home project and the transfer of funds from the tenant-based rental assistance (TBRA)program to home projects and just kind of give some background and some update on that. Thank you,Mr. Shiroma. (Note: At this time,Housing and Community Development Specialist Royce Shiroma came forward to address the members of the Committee.) MR. SHIROMA: Hello. Royce Shiroma from the Office of Housing and Community Development. Those are 2018 funds that we are transferring from the home TBRA program to the general home project. So we are putting the funding from the TBRA to a project, the `Ouli `Ekahi Wastewater Treatment Improvement Project. They were needing$113,000 so that is why we did the transfer. ACTING CHR. HUSTACE: That's great to hear. Thank you,Mr. Shiroma. Any other questions on this item? Okay, seeing none. All those in favor of closing file on Communication 23.27, please say "aye." Vote on Comm. 23.27: The motion of close file on Comm. 23.27 was carried by (Filed) the following voice vote: Ayes: Committee Members Galimba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Acting Chair Hustace—7. Noes: None. Absent: Committee Members Inaba and Kaneali`i-Kleinfelder—2. Excused: None. Comm. 24.24: REPORT OF CHANGE ORDERS AUTHORIZED: OCTOBER 16—31, 2025 From Finance Director Diane Nakagawa, dated December 17, 2025,transmitting the above report pursuant to Section 2-12.3 of the Hawai`i County Code. Motion on Close File: Ms. Kimball moved to close file on Comm. 24.24. Seconded by Ms. Kagiwada. ACTING CHR. HUSTACE: Any discussion,Members? Council member Kimball. MS. KIMBALL: Just on behalf of the regular chair of the Finance Committee, cool number. ACTING CHR. HUSTACE: Thank you, Council Member. Any questions on this report of change orders? Okay, I am not seeing any. Council member Kierkiewicz, I don't see you on there, so I am assuming you don't have any Page 2 FC-27 January 22,2026 questions. I do have one question for Public Works,if that's alright. This is regarding the Kilauea Avenue and the Keawe Street Rehabilitation project. MS. KIERKIEWICZ: Mr. Thompson is approaching. ACTING CHR. HUSTACE: Thank you. MS. KIERKIEWICZ: Chair, we have all the departments present here in case folks have questions. ACTING CHR. HUSTACE: I appreciate that. (Note: At this time, Department of Public Works Engineering Division Chief Keone Thompson came forward to address the members of the Committee.) MR. THOMPSON: Aloha. Keone Thompson, Department of Public Works, Engineering Division Chief. ACTING CHR. HUSTACE: Thank you, Chief Thompson. Just a question on this one. The purpose states that the amendment was to release unused funds earmarked for wastewater sewer line work. So just to be clear there's no additional need for wastewater work within this project then, correct? MR. THOMPSON: Correct. ACTING CHR. HUSTACE: And then it says that instead these funds are kind of shifted over to sidewalk and driveway work. So what is that sidewalk and driveway work look like in that need for that area? MR. THOMPSON: So that work is already completed last year. It's just that we had run across some additional areas that needed to be replaced as we were doing the work on the road. So we got additional money from elsewhere to pay for that sidewalk work. So we're replacing sidewalks that were not compliant with say ADA(Americans with Disabilities Act)requirements. ACTING CHR. HUSTACE: Very good. Thank you,Mr. Thompson. Chief, appreciate the time. MS. KIERKIEWICZ: Chair? ACTING CHR. HUSTACE: Yes please,Ms. Kierkiewicz. MS. KIERKIEWICZ: I have a question for Fire Department Chief Chadwick. There is a change order here. Thank you,Mr. Thompson. There's a change order Page 3 FC-27 January 22,2026 here related to community risk assessment and planning services for the Fire Department. Hi,Nikol. The original contract date is from 2023. I think the previous budget cycle the Council had appropriated some funding for some kind of master planning. It's been a couple of years. Do you guys want to provide an update on this specific change order and where we are with the project? Just very high level. Thank you. (Note: At this time, Hawai'i Fire Department Accountant IV Nikol Lonokapu came forward to address the members of the Committee.) MS.LONOKAPU: My name is Nikol Lonokapu, Accountant for Fire Department. So I can speak to this. We are just extending the contract through the end of June to give us time to review what they have submitted. MS. KIERKIEWICZ: Okay. MS. LONOKAPU: There is no extra money. It's just time. MS. KIERKIEWICZ: Great. So we can expect a copy of that report being transmitted to the Council at the beginning of next fiscal year? MS. LONOKAPU: Correct. MS. KIERKIEWICZ: So,July 1st? MS. LONOKAPU: Yes. MS. K1ERKIEWICZ: By then. Okay. Great. Thank you so much. Appreciate it. ACTING CHR. HUSTACE: Thank you, Council Member. I did have one more question for Public Works. Just an update on the temporary morgue and the status on the change orders therein. (Note: At this time,Department of Environmental Management Acting Building Chief Aaron Spielman and Police Department Major Jeremy Evangelista came forward to address the members of the Committee.) MR. SPIELMAN: Aaron Spielman,Acting Building Chief. ACTING CHR. HUSTACE: Thank you, Chief. MR. SPIELMAN: Sorry. Could you repeat the question? Page 4 FC-27 January 22,2026 ACTING CHR. HUSTACE: Really just kind of a broad overview of the temporary morgue situation, especially as it relates to the change orders we're seeing here,kind of what the status is of the temporary morgue. MR. SPIELMAN: Cold storage,right? Temp cold storage. ACTING CHR. HUSTACE: Yeah. So if you could just kind of share just an update on it. Yeah. MR. SPIELMAN: I believe the change orders; one was having to do with security cameras which are now installed. So we had a one-time change order for 24/7 security. That was, sorry I'm going off memory, something like$65,000? ACTING CHR. HUSTACE: That's really good, Chief. Good on the numbers there. MR. SPIELMAN: And was there a second one for that project? ACTING CHR. HUSTACE: There was a little bit smaller for$12,000, increasing for the air curtains and temperature control. MR. SPIELMAN: Sorry. So that became an obvious upgrade after the scope of work was done and completed. The project was done and air curtains blow air across the door opening similar to when you go into a grocery store. So that helps with vector control. ACTING CHR. HUSTACE: Very good. Thank you. Any other projected work for the morgue at this point going forward? MR. EVANGELISTA: Hi. This is Major Jeremy Evangelista,Police Department, answering since that facility runs under our management now. We don't anticipate any more work being done. I believe all of the equipment and all of the construction has been completed. At this point,it's maybe some warranty work that would need to be done or after that maintenance and upkeep. ACTING CHR. HUSTACE: Very good. Thank you,Major. Good to see you. Thank you. Any other questions from members? Okay, seeing none. All those in favor of closing file on Communication 24.24,please say"aye." Page 5 FC-27 January 22,2026 Vote on Comm. 24.24: The motion of close file on Comm. 24.24 was carried by (Filed) the following voice vote: Ayes: Committee Members Galimba,Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Acting Chair Hustace—8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder— 1. Excused: None. Comm. 24.25: REPORT OF CHANGE ORDERS AUTHORIZED: NOVEMBER 1 - 15, 2025 From Finance Director Diane Nakagawa, dated December 18, 2025,transmitting the above report pursuant to Section 2-12.3 of the Hawai`i County Code. Motion on Close File: Ms. Kimball moved to close file on Comm. 24.25. Seconded by Mr. Onishi. ACTING CHR. HUSTACE: Any discussion or questions members? MS. KAGIWADA: Yes,please. ACTING CHR. HUSTACE: Yes. Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. I'm wondering if we have DEM (Department of Environmental Management) there? MS. KIERKIEWICZ: Robin Bauman is approaching. MS. KAGIWADA: Thank you,Ms. Bauman. Your item here for a 37 percent increase, a$5.3 million increase for Hawai'i Earth Recycling to furnish, implement organics divergent. Can you just give us a little update on that program and why the numbers were kind of far off this year? (Note: At this time,Department of Environmental Management Business Manager Robin Bauman came forward to address the members of the Committee.) MS. BAUMAN: There we go. Robin Bauman,Business Manager with Department of Environmental Management. So this supplemental contract is just to certify the funds for this fiscal year 2025-2026. And that's just based on the minimum tonnage for the year times the current rate per ton. MS. KAGIWADA: Can you give us just a little summary on this contract overall and what they're doing when you say furnishing and implementing organics divergent. What are they actually able to divert and do we have the tonnage? Page 6 FC-27 January 22,2026 MS.BAUMAN: Yes. So Hawai'i Earth Recycling has our green waste contract, and they operate the East Hawai'i organics facility and the West Hawai'i organics facility. They receive the green waste including pallets and they turn that into mulch. They also provide, I believe, loading services at the Kealakehe Transfer Station to make mulch available to the public there. So this covers their costs for providing those services. MS. KAGIWADA: So originally it was $14.5 million and then added $5.3 million? MS. BAUMAN: So the$14.4 million was the original contract with the first year of operating costs plus it was originally intended to construct a new organics facility. That portion of the project was suspended years ago. So this was just the annual operating costs of the contract. It's a multi-year contract so we'll continue to see these each year as we certify the funds for each additional year. MS. KAGIWADA: So for the whole year the contract currently is $5.3 million or it's the$14.5 million plus the$5.3 million. MS. BAUMAN: No. For the current fiscal year the costs is approximately $5.3 million. MS. KAGIWADA: Okay. Okay. And so every year we'll see something like that. How many years are left in this contract? MS. BAUMAN: Quiet a few. I don't know the exact number,probably about 10 more years. MS. KAGIWADA: Okay. Alright. Thank you. MS.BAUMAN: Thank you. MS. KAGIWADA: I yield. ACTING CHR. HUSTACE: Thank you, Council Member. Over to Council Member Onishi. MR. ONISHI: Thank you, Chair. On that note,what is the penalty we've been paying for not providing all of the green waste? MS. BAUMAN: So we do have a minimum of, I believe it's 40,000 tons per year. We have not been hitting that, so we pay the difference. I don't off the top of my head have that figure for you,but I can get back to you with that. MR. ONISHI: I mean, well it's just added to this costs,right, of what we're paying out? Page 7 FC-27 January 22,2026 MS. BAUMAN: No. This is the total cost calculated at the minimum. MR. ONISHI: With the penalties? MS.BAUMAN: Yes. So we are obligated to provide 40,000 tons per year so if we fall short of that, they still get paid for the 40,000 tons. So this is based on the 40,000. MR. ONISHI: Okay. Could you folks do a breakdown so that we know the penalties, how much we are paying? Because then if we're not reaching our goals,right, we need to do something to get there. But also, are they moving the mulch that is being created on the west side to the east side? MS. BAUMAN: No. That is something the County is moving. MR. ONISHI: And then would you know when this is going to happen? MS. BAUMAN: I believe the mulch is moved to the east side as needed. MR. ONISHI: Okay. So what I understand is that there's mulch at Pu'uanahulu, which can be transferred to Hilo in the bins that are coming back empty,but that is not happening. And that could help, I think, with the tonnage that we're being short of providing to the contractor. MS. BAUMAN: No. The mulch that's being moved from West Hawai'i to East Hawai'i is part of the 40,000 that we're paying them for. Maybe I misunderstood the question. MR. ONISHI: Well, I'll contact your office and get it more clarified. That's it for DEM. Can I get Parks &Recreation? Can you introduce yourself? (Note: At this time, Parks &Recreation Business Manager Charmaine Felipe came forward to address the members of the Committee.) MS. FELIPE: Good afternoon, Charmaine Felipe, Parks &Recreation Business Manager. MR. ONISHI: Thank you for coming out. So NAS,the pump and relocation of audio connections. Wasn't this job completed a while ago? MS.FELIPE: Yes. So this change order was requested in November. MR. ONISHI: Of 2025? MS.FELIPE: Yes. Page 8 FC-27 January 22,2026 MR. ONISHI: Okay. But now when was this project finished or completed? MS. FELIPE: So this was an item that we looked at after the main project was done. We needed to provide hot water quicker to the showers than where the source was located. So this pump helps get the hot water to the showers quicker. MR. ONISHI: So when this was designed,wasn't that looked into? MS. FELIPE: I am not sure on that. MR. ONISHI: Okay. And the other one is Richardson's. So what I understand funding from this project,the renovations of Richardson's, came from another source and not from the County, correct? MS. FELIPE: Yes. MR. ONISHI: And so now with this change order for doing paving of additional parking, is that coming from that same fund or now it's from County funds? MS. FELIPE: It's coming from our County funds. MR. ONISHI: Okay. And that wasn't looked into when it was designed? MS. FELIPE: This was something that surfaced towards the end of the project. MR. ONISHI: And now where is this parking located? MS. FELIPE: This is in the facility,the same area. MR. ONISHI: Okay. Because right now when I go there to Richardson's center, it seems like there's the same amount of parking stalls and the same, I guess, design. I don't see any other additional parking. MS. FELIPE: Correct. MR. ONISHI: So the existing parking was the one that got paved? MS. FELIPE: Yes. There were some issues with the current pavement that needed to be corrected. MR. ONISHI: So wouldn't that be the contractor's responsibility? MS. FELIPE: It wasn't identified initially, so this was an additional item. MR. ONISHI: Okay. Okay. I yield. Page 9 FC-27 January 22,2026 ACTING CHR. HUSTACE: Thank you, Council Member. Any other questions? Alright. All those in favor of closing file on Communication 24.25,please say "aye." Vote on Comm. 24.25: The motion of close file on Comm. 24.25 was carried by (Filed) the following voice vote: Ayes: Committee Members Galimba,Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Acting Chair Hustace—8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder— 1. Excused: None. Comm. 24.26: REPORT OF CHANGE ORDERS AUTHORIZED: NOVEMBER 16—30, 2025 From Finance Director Diane Nakagawa, dated December 19, 2025,transmitting the above report pursuant to Section 2-12.3 of the Hawai`i County Code. Motion on Close File: Ms. Kimball moved to close file on Comm. 24.26. Seconded by Ms. Galimba. ACTING CHR. HUSTACE: Any questions on this item? MS. KIERKIEWICZ: Yes, Chair. ACTING CHR. HUSTACE: Ms. Kierkiewicz,please. MS. KIERKIEWICZ: Thank you. I have questions about the HPP (Hawaiian Paradise Park)Fire Station improvements. I don't know if that's something that can be answered by Public Works and/or Fire Department. By all means come forward. I don't bite; I had lunch. It's great to see that this is listed as a project that's ongoing. I know that this is something that I've been advocating for the last seven or so years. So I would love to understand what this particular professional consulting services package looks like. And I'm also curious about what is meant by MOU (memorandum of understanding) requirements dated June of last year. Thank you. (Note: At this time, Assistant Fire Chief Ian Chadwick came forward to address the members of the Committee.) MR. CHADWICK: Good afternoon,Assistant Fire Chief Ian Chadwick. I have a pretty loose understanding of the purpose behind this MOU but my understanding of it is that because HPP does not meet the requirements for an essential facility, in order for Public Works to pull permits to do this project, they need to enter into an MOU with us. And that MOU triggers certain additional requirements that Page 10 FC-27 January 22,2026 need to be installed such as fire sprinklers and so forth, which for us,it's all for the safety of our personnel so we're all for it. MS. KIERKIEWICZ: Okay. It's like a residential house. It was a volunteer station and now functioned as a County facility. Okay. So there's an MOU with Fire, where they have stated they've accepted this so that DPW can move forward with work. Where are we with the work; when are we going to start seeing improvements to the facility? And I believe that's work that Public Works is overseeing. Okay, great. Thank you. (Note: At this time,Public Works Acting Building Chief Aaron Spielman came forward to address the members of the Committee.) MR. SPIELMAN: Yes. Aaron Spielman, Acting Building Chief. That is correct. Department of Public Works (DPW),Building Division,Design and Engineering Section is overseeing the consultant's contract of the work. I don't have an exact answer of where it is at this point but let me find out. MS. KIERKIEWICZ: What is Engineering Partners doing exactly? MR. SPIELMAN: They're the consultant to come up with the permit plans to submit for a permit,which will be inclusive of the scope of work as Assistant Fire Chief mentioned sprinklers and fire alarms. MS. KIERKIEWICZ: So we don't have internal capacity to create a plan for our permitting processes; we have contract that out? MR. SPIELMAN: That's correct at this time. Yes. MS. KIERKIEWICZ: Okay. MR. CHADWICK: Fire met with the DPW team back in December just to touch base with various projects and at the time, and this is still preliminary,but at the time they felt optimistic that this project can go out to bid in summer of 2026. MS. KIERKIEWICZ: Which is like five months away. Are we still feeling very optimistic about that, Building? Got a thumbs up there. Let's say it for the record. MR. SPIELMAN: Yes. Yes. MS. KIERKIEWICZ: Okay. If I could get monthly progress reports that would be wonderful, and I'd love to have a copy of whatever plan has been developed by Engineering Partners. I'd love to know what the timeline for action is because at the end of the day these facilities are home away from home for our firefighters and I just want to make sure that their living situation is dignified. Thank you so Page 11 FC-27 January 22,2026 much for your work on this. I appreciate it. Chair, I yield. Chief,you have something else to offer? MR. CHADWICK: Yes, thank you. I just wanted to recognize Deputy Director Azevedo and the work that him and his team have been doing at Paradise Park with repaving. They've done an outstanding job, so we'd like to recognize their work and their partnership. MS. KIERKIEWICZ: I didn't see Deputy sneak in here,but I do appreciate you, Neil, for always keeping me in the loop and sending text messages as the work is progressing. A lot has really happened and moved forward under your leadership so thank you for that. I yield. ACTING CHR. HUSTACE: Thank you, Council Member. Any other questions from the body? I do have one question for DPW on the Wailuku Drive drainage improvements. (Note: At this time,Public Works Engineering Division Chief Keone Thompson came forward to address the members of the Committee.) MR. THOMPSON: Hi. Keone Thompson,Engineering Division Chief. ACTING CHR. HUSTACE: Thank you, Chief. As it reads to me here, the original contract$291,000,this change order here shows a decrease of negative $36,000. But in the purpose statement,it reads as if things are being added as an amendment to add unforeseen work, material change from AC to concrete, replanting trees. So that would seem as if it's an increase in work and a need. MR. THOMPSON: It's actually a change in use of some of the funding. So there was some obstacles that we ran across during the construction of the project. So in order to meet the changes in the field we had some assessments to the scope and that's what the changes in the items were,but it came to a net decrease in the cost. ACTING CHR. HUSTACE: Okay. So these are the things that have changed but it was a net decrease overall? MR. THOMPSON: Correct. Yes. ACTING CHR. HUSTACE: Okay. Just so it reads just as how I see it,it seems that it would be typically an increase in some of those products. But I appreciate the discussion here. Thank you so much. Any other questions? Alright. Thank you,Members. All those in favor of closing file on Communication 24.26,please say"aye." Page 12 FC-27 January 22,2026 Vote on Comm. 24.26: The motion of close file on Comm. 24.26 was carried by (Filed) the following voice vote: Ayes: Committee Members Galimba,Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Acting Chair Hustace—8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder— 1. Excused: None. Comm. 73.10: PRELIMINARY MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED JUNE 30, 2025 From Finance Director Diane Nakagawa, dated January 2, 2026,transmitting the above report pursuant to Section 6-6.3(h) of the Hawai`i County Charter. Motion on Close File: Ms. Kimball moved to close file on Comm. 73.10. Seconded by Ms. Galimba. ACTING CHR. HUSTACE: Any questions on the monthly budget status report? We are joined by Director Nakagawa here in the Kona Chambers if there are any questions. Alright. MS. KIMBALL: Chair. ACTING CHR. HUSTACE: Yes. Please, Council Member. MS. KIMBALL: I would just like to ask the director to come up because we are going to talk about the fund balance too,which also comes from the previous fiscal year. We know that the department has had a lot of things on its plate recently,including updating our finance system and dealing with the hazard pay and whatnot. This still is pretty significantly outdated information. Rather than speaking specifically to the report, and thanks for the leeway, Chair,when can we expect more timely updates and the status of our budget moving forward? Thank you. (Note: At this time,Finance Director Diane Nakagawa and Controller Jon Arbles came forward to address the members of the Committee.) MS.NAKAGAWA: Good afternoon, Council. Diane Nakagawa,Finance Department. I have with me today, Jon Arbles, Our Controller. We'll talk a little bit more about our process. We do understand that the timing of these reports is delayed at the moment and we been working on it over the past year with the implementation of our new financial system. We went live in July with COHnect. It has been a tremendous effort, and we've had some bumps in the road. We're still very positive about it. It's still innovative and it's going to take us to where we need to go but it has been a challenge and we're continuing to push forward. Page 13 FC-27 January 22,2026 Jon and I were just speaking prior to this meeting about that exact thing on the timing, so I'll let Jon kind of expand a little bit on expectations moving forward. But the plan is definitely to get it a lot sooner and we do understand this information is critical. MR. ARBLES: Hi. Thanks. Jon Arbles, I'm the Controller. I think for us in 2024 it looks like the average we were behind was somewhere between seven and eight months. So far in 2025, we're somewhere between four and five months behind. Our goal is with the exception of the June 30, which requires us to close fiscal year end and maybe being three months behind the October 15 deadline, our goal is that's as late as we would ever put one out going forward. So our hope is that with the new system timely would look like within the next one to two months; delayed would look like three months and we're hopeful that nothing would extend beyond that. The one thing that that is going to require is that our system is operating properly. So bear with us as we struggle through this implementation. Thanks. ._ MS. NAKAGAWA: I do want to add that one of the things, as we looked for the implementation of our new system, having a monthly budget status report (MBSR) that is easier to generate was included in our scope and something that the consultant team has worked on, our team has tested. We're close but I just wanted to assure you that is something we added in and wanted from this new system to make sure that we can get information a lot quicker. MS. KIMBALL: If I may follow up on that statement. Would there be an opportunity for us to see one of those demonstration reports? Because the delay is an issue, of course, and certainly understand closing out a fiscal year adds a whole another level of complication. But I've always taken an issue with the fact that not only by the time do we get the report it's often irrelevant but it's often in a format that is very indigestible. It's very difficult to make heads or tails of it unless you're looking for something specific. So is there an opportunity for us to weigh in from the council perspective about the monthly report that would be potentially generated for us that could be a little bit more meaningful to our deliberations? MR. ARBLES: Sure. So let me start by talking about the timing and then we can answer that question specifically. The June 30, 2025,that we just came out with to get to fund balance was produced off of our old system. So to get to that final fund balance,that's it. Starting in July we're using our new system. So the push button reports, the MBSRs, that we expect to get out more timely are following that. Unfortunately,we cannot release any of those until we get the June 30 fund balance and we get our year-end closing finalized. So the delay really is June 30, 2025. That's what's causing this. If that was done in complete, those monthly budget reports would be more timely. Page 14 FC-27 January 22,2026 So with that being said, we also had kind of a hiccup in our original implementation, and we discovered some time in October or November, where we were getting duplicates in some of the expenditures. That set us back probably two months while we got that fixed. It was a substantial fix to our system. So before we release any of the monthly budget status reports we also want to make sure that those are accurate. So as we sit here today, we're probably 60 days from the fix, maybe a little less than that and we do want to make sure that what comes out is accurate. At that point, I do think that we can ask for Council's opinion on what information and kind of adjust or modify that report as appropriate. MS. NAKAGAWA: So just to add to that,you know, we provided the current monthly budget status report to our consultant to generate the initial report. So initially it will probably look similar. Now we've talked a lot about having information that is more digestible, easy to read. We are as anxious and even more so as impatient as you, so trust me when I say that. But for us,we have to have a system that works first. This is the same conversation I had this morning with Oracle, that is the product that we are using,is that we haven't even begin to touch all the bells and whistles that we got in the system, which we will, and we'll benefit from. But first we have to make sure all of the necessary mechanics,the invoicing, the AP (Accounts Payable) side, the payroll side; that's all running as smoothly as it can be. And then the next step in kind of that fun stuff,the additives,the things that we all kind of want to see come out of it to make our budget information a lot more accessible for the community. It's coming. We just have to approach this kind of with these steps to make sure like Jon said the accuracy of the information is most important. Once we get that done, we will start moving into all of things that we look forward to and planning that we didn't have before. MS. KIMBALL: Appreciate but definitely wanting to make sure that we have accurate information and, you know, I hope as we get further into this process of adopting the new system that there is a greater opportunity for the Council to kind of weigh in on some of the visualization. I think we have a pretty archaic way of doing things, which doesn't allow us to see the forest through the trees. We get things done to a very granular level of detail,but that actually doesn't tell us the real picture about where we're putting the money and it's being used successfully and where it's not. So I'm sure my colleagues share this desire to have something that is a little bit more clear that we are budgeting for the outcomes that we want to see. I yield, Chair. Thank you. ACTING CHR. HUSTACE: Thank you, Council Member. Any other questions? Okay. Thank you, Controller. Thank you,Director. Really appreciate your dedication. Your leadership through this process really is going to help the community and us dive into the numbers. So,thank you. Alright, all those in favor of closing file on Communication 73.10, please say"aye." Page 15 FC-27 January 22,2026 Vote on Comm. 73.10: The motion of close file on Comm. 73.10 was carried by (Filed) the following voice vote: Ayes: Committee Members Galimba,Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Acting Chair Hustace—8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder— 1. Excused: None. , Comm. 98.4: SECOND QUARTER REPORT OF PERSONS EMPLOYED UNDER A CONTRACT FOR LESS THAN 90 DAYS: OCTOBER 1 — DECEMBER 31, 2025 From Human Resources Director Sommer J. Tokihiro, dated January 2, 2026, transmitting the above report pursuant to Section 2-12.5 of the Hawai`i County Code. Motion on Close File: Ms. Kimball moved to close file on Comm. 98.4. Seconded by Ms. Galimba. ACTING CHR. HUSTACE: Any discussions from the members? Please, Council Member Onishi. MR. ONISHI: Is Sommer there? ACTING CHR. HUSTACE: Director Tokihiro is in Hilo, Council Member Kierkiewicz? MS. KIERKIEWICZ: Director is not present in chambers. ACTING CHR. HUSTACE: Do we have a representative from Human Resources (HR)? MR. ONISHI: Or if not, maybe Finance? Director Nakagawa? I don't know if I did see this or not,but was there a report about employees on each department about how many vacancies they had? Was there something sent out to us within the last couple weeks or a month? (Note: At this time,Finance Director Diane Nakagawa came forward to address the members of the Committee.) MS. NAKAGAWA: Diane Nakagawa,Finance. Council Member, I am not sure if something was sent out. You know,that is a topic that we usually cover those numbers when we do our budget review as well. But I'm not sure if HR or someone sent out recently. Page 16 FC-27 January 22,2026 MR. ONISHI: Because I thought in that report, OSCER(Office of Sustainability, Climate, and Economic Resilience) was fully staffed. But then in here it talks about that they have an employee that is 90-day contract. MS. NAKAGAWA: I would be happy to follow up for you. MR. ONISHI: Okay. Thank you. • ACTING CHR. HUSTACE: Thank you, Council Member. Any other questions? I know we don't have HR in the chambers here. Director Nakagawa,would you by chance know some are these are grant-funded; do you know the duration for some of these grants by chance? MS. NAKAGAWA: I don't have that off the top of my head. But we can get that information back to you. ACTING CHR. HUSTACE: Just curious, some of them are related with our Fire Department, our EMS (Emergency Medical Service)Branch, and these helicopter pilots, I thought we were trying to transition to full-time employees within the department. Are these grants state grants? I'm just kind of curious on where are some of these positions being funded from. MS. NAKAGAWA: Sure. We'll work on a summary for you and get that back to you. ACTING CHR. HUSTACE: Thank you, Director. Appreciate that. Okay, no other discussion. Those in favor of closing file on Communication 98.4,please say"aye." Vote on Comm. 98.4: The motion of close file on Comm. 98.4 was carried by the (Filed) following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, • Villegas, and Acting Chair Hustace—8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder— 1. Excused: None. Comm. 680: NOTIFICATION OF FUND BALANCE AS OF JUNE 30, 2025 From Finance Director Diane Nakagawa, dated December 30, 2025, transmitting the above report pursuant to Section 2-12.4 of the Hawai`i County Code, indicating a total budgetary fund balance of$270,528,719.39. Motion on Close File: Ms. Kimball moved to close file on Comm. 680. Seconded by Ms. Kagiwada. Page 17 FC-27 January 22,2026 ACTING CHR. HUSTACE: Any discussion,Members? Council Member Kimball, you want to start us off and then we'll go to Council Member Kagiwada. MS. KIMBALL: Actually,I would like to ask the department to present the information about this close of your fund balance, what it looks like in terms of our all over debt service ratio and how it is going to play out moving forward? ACTING CHR. HUSTACE: Thank you for the question. Director,the floor is yours. (Note: At this time,Finance Director Diane Nakagawa came forward to address the members of the Committee.) MS.NAKAGAWA: Okay. So what we have in front of you is your ending fund balance as of June 30, 2025, which is the$270.5 million. We do take into account the fund balance designated for future year, which is actually our current year that we are in now. So our budget was based on$44.4 million in the current budget, leaving a fund balance of$226,033,719.00. I do want to add that with temporary hazard pay, we did an appropriation in the last fiscal year. We didn't get through all the bargaining units at the time, so we had to do another appropriation for $59 million in the current year. So for the$226 million,we do need to take into account the$59 million appropriation we did,I believe,in July of this fiscal year. So that with the$59 million appropriation,the remaining fund balance is $167,033,719.00. We are still working on finalizing the total for temporary hazard pay. We do expect it to be less than we anticipated,but we'll bring that forward as we move through our budget process. Primary reasoning for our fund balance growth has been slightly higher revenues in RPT (Real Property Tax), TAT (Transient Accommodations Tax and interest again. And then some lapsed expenditures, primarily in S&W(Salaries &Wages). So S&W, when I looked at the previous year lapsing as well and it is pretty consistent as the previous year looking at about at the end of the year 17 percent vacancy. That kind of goes to the question we were just speaking to. So with the expenditure that lapsed and the higher revenue that accounted for the growth in our fund balance. Your question on our percentage and where we are at, we have not finalized the budget. So in order to determine the percentage you need to know what your general fund expenditures are. So we're not quite there yet. I did a rough calculation based on if we were based it on last year's expenditures, looking at future designated fund balance, there's so many variables,right? So I would hate to give a number but it's a little higher than 20 percent. But like I said that is going to change because you need the general fund expenditure number,you need your designated fund balance number in order to get to that. Page 18 FC-27 January 22,2026 MS. KIMBALL: Would you be able to offer a little bit more detail around understanding that we've collected a little more than anticipated, our expenses are down,particularly in salary and wages. Could you maybe attribute rough percentages to the different revenue differences that anticipated and the different expenditures? Just give me a ballpark. I'd like to understand that this is significantly because of salaries and wages or it's a pretty equal. MS. NAKAGAWA: Sure. It's both,right, looking at the numbers,it's both. So just a few examples between our TAT and our Real Property Tax it's about$28 million in revenue. Our interest again was higher than expected. We're watching that pretty carefully now in our draft budget. We want to be conservative because there is not a lot in our control. But the interest we got was significantly higher than we budgeted. So almost$20 million. Between salaries and wages and OCE (Other Current Expenses) equipment,that is probably another$27 million in lapsed funds. MS. KIMBALL: So if I'm interpreting it correctly,it's pretty even in terms of both unexpended expenses and additional revenue from the numbers that you're giving me. Is that an accurate assessment? MS. NAKAGAWA: Yes. MS. KIMBALL: It's looking like maybe Five percent of the total budget one way or the other. MS. NAKAGAWA: I will say that when you look just at the numbers from the last fiscal year, you're going to see a big lapse in the appropriation for temporary hazard pay. But that is because we just didn't get it out. And then in this year we'll do that appropriation. So an expenditure lapse is a lot higher but if you take out the lapse that accounts for temporary hazard pay,it's closer to the revenue increase as well. MS. KIMBALL: That makes sense. You said that we expect the temporary hazard pay might be a little bit less than what we have agreed to. Can you give me a ballpark on that as well? MS. NAKAGAWA: It will be less. I'm hesitant to give you a number. I would say it's at least$10 million. Is that about,right? Less? MR. ARBLES.' Maybe closer to $7 million, less than the$59 million that was appropriated. MS. KIMBALL: Okay, great. MS. NAKAGAWA: They're still working through calculating everything in the benefits and the ERS (Employees' Retirement System) contributions. There was Page 19 FC-27 January 22,2026 a period in which employees were able to request more information on their payouts so there was some time to finalize everything. There's still a couple lingering so we will definitely get a better number soon and definitely before budget. MS. KIMBALL: Okay. I think it would be appropriate for this body to receive a closeout summary with respect to the hazard pay. How much went out; how did we pay for consulting services to figure out how to allocate it? All of that. I think this has been something that we've touched a lot of different times and different ways and the full picture has been kind of lost over that entire timeframe. So I think it would be useful to have a closeout report if could just request that. MS. NAKAGAWA: Yes, we would be happy to do that. That is something that we been working on for a long time and our team's put a lot of effort into it so we would be happy to get that out. MS. KIMBALL: Perfect. Great. Thank you so much. I yield, Chair. ACTING CHR. HUSTACE: Council Member Kagiwada. MS. KAGIWADA: Thank you. Just following up on that. One, would we be able, when you do the closeout statements, can we look at some trends over years or over time? Because are we constantly budgeting for a lot more positions than we are able to fill year after year after year and is it fairly steady; does that go up and down? I mean, I think it would be really good for us to understand that and the same with real property tax revenues. I know we want to be conservative, that's always good to have more money than less at the end but are we constantly around the same ballpark or are we improving in getting those numbers a little closer over time. It would just really be helpful for us to see those trends as we go forward so that we can think about budgeting in the future. Does that make sense? MS. NAKAGAWA: Absolutely, Council Member. That is something we are actively doing. I can say for real property tax, we are getting better and closer. MS. KAGIWADA: Good. MS. NAKAGAWA: It's the ones where we feel the variables are just a little bit out of our control that is a little more conservative. MS. KAGIWADA: Sure. MS. NAKAGAWA: But I mean, we are trying to tighten that up and make this budget as accurate as possible but also allow for any changes or unexpected things that come. Page 20 FC-27 January 22,2026 MS. KAGIWADA: Okay. Just so I understand this, you gave us some ballpark numbers for TAT, RPT, interest, salaries and wages, and OCE. Do those numbers, which come up to about$75 million,I think if my math is correct,is that part of the$167 million that you talked about that was the end of the year minus the appropriation for temporary hazard pay? Are these numbers what are making up some of that$167 million? MS. NAKAGAWA: Yes. MS. KAGIWADA: Okay. It's about$75 million so there is still a very large amount. Is that amount what was carryover from the previous year,primarily, or what is that additional; if this was $75 million and that's $167 million, is that because there's a very large carryover from the previous year? Is that what's making that number much bigger or am I doing that wrong? You can totally correct me if I am doing that wrong. MS. NAKAGAWA: No. I'm just trying to figure out the best way to explain it. You will have your excess fund balance, so last year was the$174 million. During the year last year, we did the$70 million appropriation so we would have reduced that. Then we take into account the extra revenue that wasn't budgeted before and the lapsed funds that we talked about. Now,the numbers I gave you are just a portion of them. Those are just the major ones, right. So we take both of those and then we add that back in to get your new fund balance number. MS. KAGIWADA: The $104 million? Okay. MS. NAKAGAWA: But what that doesn't account for is the appropriation we did this current year. MS. KAGIWADA: Okay. MS.NAKAGAWA: So that's what got us down to the$167 million. MS. KAGIWADA: Okay,meaning that$59 million for hazard pay or something else? MS. NAKAGAWA: That is the$59 million for hazard pay. MS. KAGIWADA: Okay. So we haven't done any additional,besides the $59 million for hazard pay, additional appropriations for this year? MS. NAKAGAWA: No. MS. KAGIWADA: Okay. Alright. That's just kind of where I am at. I'm trying to understand that. Do we anticipate doing that? Page 21 FC-27 January 22,2026 MS. NAKAGAWA: Do we anticipate? MS. KAGIWADA: Since we've done additional appropriations in previous years, like mid-year or towards the end of the year. Do you already know that there are some things coming? MS. NAKAGAWA: I don't have anything at this moment that's come to mind is necessary at the moment. MS. KAGIWADA: Okay, okay. Alright. Thank you. Looking forward to continuing to understand this a little better and getting those trends,which I really think will help. Thank you so much. I yield. ACTING CHR. HUSTACE: Thank you, Council Member. Any other discussions? Okay, seeing none. All those in favor of closing file on Communication 680, please say"aye." Vote on Comm. 680: The motion of close file on Comm. 680 was carried by the (Filed) following voice vote: Ayes: Committee Members Galimba,Inaba, Kagiwada, Kierkiewicz, Kimball, and Acting Chair Hustace—6. Noes: None. . Absent: Committee Members Kaneali`i-Kleinfelder, Onishi, and Villegas—3. Excused: None. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Bill 114: AMENDS ORDINANCE NO. 25-45,AS AMENDED,THE OPERATING BUDGET OF THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30, 2026 Increases revenues in the Federal Grants -Hawai`i County Police Department Roadblock Program Grant account($17,961) and appropriates the same to the Hawai`i County Police Department Roadblock Program account. Reference: Comm. 681 Intr. by: Council Member Kaneali`i-Kleinfelder(B/R) Page 22 FC-27 January 22,2026 Vote on Bill 114: Mr. Inaba moved to recommend passage of Bill 114 on first (Approved) reading. Seconded by Ms. Kagiwada and carried by the following voice vote: Ayes: Committee Members Galimba,Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, and Acting Chair Hustace—7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Villegas—2. Excused: None. Bill 115: AMENDS ORDINANCE NO. 25-45, AS AMENDED,THE OPERATING BUDGET OF THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30, 2026 Increases revenues in the Federal Grants—Occupant Protection Program Grant account($13,255) and appropriates the same to the Occupant Protection Program account. Reference: Comm. 682 Intr.by: Council Member Kaneali`i-Kleinfelder(B/R) Vote on Bill 115: Mr. Inaba moved to recommend passage of Bill 115 on first (Approved) reading. Seconded by Ms. Kagiwada and carried by the following voice vote: Ayes: Committee Members Galimba,Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, and Acting Chair Hustace—7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Villegas—2. Excused: None. Bill 116: AMENDS ORDINANCE NO. 25-45, AS AMENDED, THE OPERATING BUDGET OF THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30, 2026 Increases revenues in the Federal Grants—Hawai`i County Police Department 2023 Selective Traffic Enforcement Program Grant account($54,814) and appropriates the same to the Hawai`i County Police Department 2023 Selective Traffic Enforcement Program account. Reference: Comm. 683 Intr. by: Council Member Kaneali`i-Kleinfelder(B/R) Page 23 FC-27 January 22,2026 Vote on Bill 116: Mr. Inaba moved to recommend passage of Bill 116 on first (Approved) reading. Seconded by Ms. Kagiwada and carried by the following voice vote: Ayes: Committee Members Galimba,Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, and Acting Chair Hustace—7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Villegas—2. Excused: None. Bill 117: AMENDS ORDINANCE NO. 25-45,AS AMENDED, THE OPERATING BUDGET OF THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30, 2026 Increases revenues in the Federal Grants—High Intensity Impact Grant account ($340,000) and appropriates the same to the High Intensity Impact Grant Program account. Reference: Comm. 684 Intr. by: Council Member Kaneali`i-Kleinfelder(B/R) Vote on Bill 117: Mr. Inaba moved to recommend passage of Bill 117 on first (Approved) reading. Seconded by Ms. Kagiwada and carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, and Acting Chair Hustace—7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Villegas—2. Excused: None. Bill 118: AMENDS ORDINANCE NO. 25-45,AS AMENDED,THE OPERATING BUDGET OF THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30, 2026 Increases revenues in the Federal Grants—Hawai`i County Police Department Pedestrian and Bicycle Safety Grant account($54,098) and appropriates the same to the Hawai`i County Police Department Pedestrian and Bicycle Safety Program account. Reference: Comm. 685 Intr.by: Council Member Kaneali`i-Kleinfelder(B/R) Page 24 FC-27 January 22,2026 Motion to Approve: Mr. Inaba moved to recommend passage of Bill 118 on first reading. Seconded by Ms. Kagiwada. ACTING CHR. HUSTACE: Any discussion? MS. KIERKIEWICZ: Chair? ACTING CHR. HUSTACE: Yes. We'll go to Council Member Onishi then to Council Member Kierkiewicz. Council Member Onishi is deferring to Council Member Kierkiewicz. Please, Council Member Kierkiewicz, the floor is yours. MS. KIERKIEWICZ: That's very sweet. Thank you,Vice Chair. I just wanted to thank you both for being here and the work of the department to secure this grant funding. I've seen these come through the Council during my tenure here and I know that they support really important public safety projects and activations that are run by the departments. So thank you for being so on it and keeping these grants. This grant money coming in,because right now it's just a tenuous situation because a lot of counties are not seeing a lot of the federal dollars flow through. So thank you for just keeping track of all of this and making sure that our department personnel have the funding that they need to carry out the important work. Thank you. ACTING CHR. HUSTACE: Thank you, Council Member. To Council Member Onishi, please. MR. ONISHI: Thank you, Chair. I had a question for Police. With this bicycle safety program, I see a lot of people riding their bikes on the sidewalks, going through crosswalks, or illegally going across the roadway, what are you guys thought on how you're going to improve that part of the safety program? (Note: At this time,Police Major Jeremy Evangelista came forward to address the members of the Committee.) MR. EVANGELISTA: Hi. This is Major Jeremy Evangelista,Hawai`i County Police Department. Thank you for that question. As with most of our strategies, we begin with education. I think a big part of using this grant is going to be educating people about E-Bikes and what is and is not allowed and what the different classes are, and also to educate our pedestrians, our foot pedestrians, on properly using crosswalks and sidewalks. It begins with education and then it usually ramps up to enforcement when we're done educating and we've spent enough time educating. So that's our strategy. We try to see people making the mistake,letting them know it's a mistake and then if the behavior gets repeated then we summons them to court. MR. ONISHI: So is there a requirement that anyone riding a bicycle needs to have a certified or licensed? Page 25 • FC-27 January 22,2026 MR.EVANGELISTA: No. Bicycles don't require licenses, except for the registration with the motor vehicle registration. So a bicycle license tag, basically. MR. ONISHI: Okay. Because you know why, I see a lot of like a certain group riding with these bicycles,right, and it's like different colors and so forth. When I was with the Governor's Office,they did a clean-up at the old airport in the bushes area and there was like a chop shop of all these bicycles, right. And so, it seems like they get those bikes, they kind of alter different types of bikes, you know, with the different parts so I guess police cannot identify it. So how can you folks, with this funding,help curb that situation? MR. EVANGELISTA: I'm not sure that would be an appropriate use for this funding because that speaks more toward property crimes rather than pedestrian safety. But if we were to make a stop on a bicycle,we would check for the registration tag and ideally the registration tag matches the serial number and if there's a discrepancy there, perhaps we might start looking into some sort of criminal investigation. MR. ONISHI: Okay. How often do you folks stop those bicycles or those people who are riding the bikes? MR. EVANGELISTA: That would be a relative term,but I don't have any hard numbers on the amount of bicycle stops that we have. I didn't research that number before coming. I'm sorry. MR. ONISHI: Okay, yeah. No problem. It's just that,yeah, there's so much and sometimes they're so dangerous. They just cut in front of you. And so, you know,it's like a safety matter on that part. And I don't think it's just me but there's other drivers out there that experience those situations. So something to I guess look at. Thank you. I yield. MR. EVANGELISTA: Thank you. ACTING CHR. HUSTACE: Thank you, Council Member. Thank you,Major Evangelista,you and your colleagues in the Police Department for bringing these items forward for consideration on the Finance Committee. Thank you. Any other discussions? Alright. All those in favor of forwarding Bill 118 to Council with a favorable recommendation,please say"aye." Page 26 FC-27 January 22,2026 Vote on Bill 118: The motion to recommend passage of Bill 114 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Galimba,Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, and Acting Chair Hustace—7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Villegas—2. Excused: None. ADJOURN- There being no further business on our agenda today, Acting Chair Hustace MENT: adjourned the meeting at 2:02 p.m. Thank you very much. Approved: 172_7 (io Mr.Matt Kaneali`i-Kle. felder, Ch. . 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